Charity vs Non Profit Making Organisation

Charity vs Non Profit Making Organisation

Didn't find your answer?

What are the advantages disadvantages of being a charity vs non profit making organisation in terms of VAT,Tax,Regulations,etc.
Mihai Dascalescu

Replies (2)

Please login or register to join the discussion.

avatar
By AnonymousUser
10th Mar 2003 15:03

Charitable status
Actually charitable status is not something an organisation can choose as an option. Rather it is a question of legal fact - the organisation either is "charitable" within the English law meaning of that term or it is not. If it is charitable it has a legal obligation to register with the Charity Commission for England and Wales (there are some exceptions for instance "exempt" charities which include universities and national museumes and galleries ).

Cecile Gillard,
Senior Legal Adviser, Jordans Limited

Thanks (0)
avatar
By User deleted
08th Mar 2003 16:40

Give us a clue
I suggest this is too general a question. There are too many possible organisations to give a full answer.

Generally Charities cannot reclaim VAT paid.
(but for example listed places of worship can get a grant to reduce the effective rate of VAT to 5%).

Charities may find it is easier to show their activities are directly related to the charitable purpose and avoid tax. However depending upon the nature of organisation activities may not be a trade.

There are charity regulations which some organisations may want to avoid.

Thanks (0)